Money Move #2:
Reduce Your Debt

One of the sad-but-true facts of modern life is that we have an addiction to credit cards. In fact, the average American carries nearly $10,000 of credit card debt with a typical annual interest rate of 14%. That's $1,400 a year just to pay the interest!

How about making a pledge to become debt-free in 2009? You can do it, and it's easier than you think. Let's look at how you can pay off a credit card in a year.

Start with your credit card that has the highest interest — this is the card you should pay off first (and one you will stop using). Call the card company, ask for your current balance and divide this number by 12. Then pay this amount plus the finance charge on your monthly statement each month.

In 12 months, you will have paid off the card. See how easy it is to escape your credit card debt?

Get 5 more steps for cutting credit cards out of your life for good here.

Next: Money Move #3: Continue Saving for Retirement